KBR Awarded Major Task Order Under Logistics Civil Augmentation Program (LOGCAP) IV Contract

Houston, Texas - March 2, 2010 - KBR (NYSE: KBR) today announced it has been awarded a task order by the U.S. Army Contracting Command under its current Logistics Civil Augmentation Program (LOGCAP) IV contract. KBR will execute the LOGCAP IV Corps Logistics Support Services (CLSS), Theater Transportation mission (TTM), and Postal Services Task Order in Iraq. The Period of Performance is one base year plus four option years. The award represents KBR's first major Task Order under the LOGCAP IV contract.

Under the task order KBR will provide the following:

CLSS (Corps Logistics Support Services) at multiple locations in Iraq. Services will include vehicle maintenance (organizational and direct support levels), Supply Support Activity, Central Issue Facilities, Self Service Supply Centers, Ice Plant Services, some Air Terminal Operations and Bulk Fuel Operations to include fuel laboratories.

Postal Services which will include supporting Joint Military Mail Terminal functions, distribution and transportation of mail, augmentation of Army Post Offices, mail handling equipment, mail processing, and receiving and sorting mail.

"This award demonstrates the U.S. government's recognition of KBR's ability to deliver high-quality logistics services in challenging contingency environments," said Bill Bodie, President, KBR North American Government and Defense. "We look forward to providing the U.S. military with a critical force enabler as we enter into a new phase of our mission in Iraq."

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.